<SEC-DOCUMENT>0000794367-15-000139.txt : 20150812
<SEC-HEADER>0000794367-15-000139.hdr.sgml : 20150812
<ACCEPTANCE-DATETIME>20150812084556
ACCESSION NUMBER:		0000794367-15-000139
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20150812
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20150812
DATE AS OF CHANGE:		20150812

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Macy's, Inc.
		CENTRAL INDEX KEY:			0000794367
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-DEPARTMENT STORES [5311]
		IRS NUMBER:				133324058
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0129

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-13536
		FILM NUMBER:		151045624

	BUSINESS ADDRESS:	
		STREET 1:		7 WEST SEVENTH STREET
		CITY:			CINCINNATI
		STATE:			OH
		ZIP:			45202
		BUSINESS PHONE:		5135797000

	MAIL ADDRESS:	
		STREET 1:		7 W SEVENTH ST
		CITY:			CINCINNATI
		STATE:			OH
		ZIP:			45202

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	FEDERATED DEPARTMENT STORES INC /DE/
		DATE OF NAME CHANGE:	19950307

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	R H MACY & CO INC
		DATE OF NAME CHANGE:	19950307

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	MACY ACQUIRING CORP
		DATE OF NAME CHANGE:	19861124
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>es8k08122015.htm
<DESCRIPTION>FORM 8-K FILED ON AUGUST 12. 2015
<TEXT>



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  <h2 style='margin:0in;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;font-size:10.0pt;font-family:"Arial","sans-serif";color:windowtext;font-weight:bold;'>UNITED STATES</h2>
  </td>
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  <h2 style='margin:0in;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;font-size:10.0pt;font-family:"Arial","sans-serif";color:windowtext;font-weight:bold;'>SECURITIES AND EXCHANGE COMMISSION</h2>
  </td>
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  <td width=638 colspan=3 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'><b>Washington</b><b>, D.C.</b><b>&nbsp; 20549</b></p>
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  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'><b>&nbsp;</b></p>
  </td>
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  <td width=638 colspan=3 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <h4 style='margin:0in;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;font-size:14.0pt;font-family:"Times New Roman","serif";color:windowtext;font-weight:normal;'>FORM 8-K</h4>
  </td>
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  <td width=638 colspan=3 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>&nbsp;</p>
  </td>
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  <td width=638 colspan=3 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>CURRENT REPORT</p>
  </td>
 </tr>
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  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=638 colspan=3 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>Pursuant to Section 13 or 15(d) of the</p>
  </td>
 </tr>
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  <td width=638 colspan=3 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>Securities Exchange Act of 1934</p>
  </td>
 </tr>
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  <td width=638 colspan=3 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>&nbsp;</p>
  </td>
 </tr>
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  <td width=638 colspan=3 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>&nbsp;</p>
  </td>
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  <td width=638 colspan=3 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>Date of Report:&nbsp; August 12, 2015</p>
  </td>
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  <td width=638 colspan=3 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>&nbsp;</p>
  </td>
 </tr>
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  <td width=638 colspan=3 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>&nbsp;</p>
  </td>
 </tr>
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  <td width=638 colspan=3 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>
	<font size="5">MACY'S, INC.</font></b></p>
  </td>
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  <td width=638 colspan=3 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>&nbsp;</p>
  </td>
 </tr>
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  <td width=638 colspan=3 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>7 West Seventh Street, Cincinnati, Ohio 45202<br>
  (513) 579-7000</p>
  </td>
 </tr>
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  <td width=638 colspan=3 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>&nbsp;</p>
  </td>
 </tr>
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  <td width=638 colspan=3 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>-and-</p>
  </td>
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  <td width=638 colspan=3 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>&nbsp;</p>
  </td>
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  <td width=638 colspan=3 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>151 West 34<sup>th</sup> Street, New York, New York 10001<br>
  (212) 494-1602</p>
  </td>
 </tr>
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  <td width=638 colspan=3 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>&nbsp;</p>
  </td>
 </tr>
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  <td width=638 colspan=3 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>&nbsp;</p>
  </td>
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  <td width=175 valign=top style='width:131.4pt;padding:0in 5.4pt 0in 5.4pt;
  height:7.15pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>Delaware</p>
  </td>
  <td width=222 valign=top style='width:166.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:7.15pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>1-13536</p>
  </td>
  <td width=241 valign=top style='width:180.9pt;padding:0in 5.4pt 0in 5.4pt;
  height:7.15pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>13-3324058</p>
  </td>
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  <td width=175 valign=top style='width:131.4pt;padding:0in 5.4pt 0in 5.4pt;
  height:7.1pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>(State of Incorporation)</p>
  </td>
  <td width=222 valign=top style='width:166.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:7.1pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>(Commission File Number)</p>
  </td>
  <td width=241 valign=top style='width:180.9pt;padding:0in 5.4pt 0in 5.4pt;
  height:7.1pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>(IRS Employer Identification No.)</p>
  </td>
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  <td width=638 colspan=3 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt;
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  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>&nbsp;</p>
  </td>
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  <td width=638 colspan=3 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt;
  height:7.1pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>&nbsp;</p>
  </td>
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  <td width=638 colspan=3 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt;
  height:7.1pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>Check the appropriate
  box below if the Form 8-K is intended to simultaneously satisfy the filing
  obligation of the registrant under any of the following provisions:</p>
  </td>
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  <td width=638 colspan=3 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt;
  height:7.1pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
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  <td width=638 colspan=3 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt;
  height:7.1pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>[&nbsp;&nbsp;&nbsp;]&nbsp;&nbsp;Written communications pursuant to Rule&nbsp;425 under the
  Securities Act (17 CFR 230.425)</p>
  </td>
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  <td width=638 colspan=3 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt;
  height:7.1pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
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  <td width=638 colspan=3 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt;
  height:7.1pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>[&nbsp;&nbsp;&nbsp;]&nbsp;&nbsp;Soliciting material pursuant to Rule&nbsp;14a-12 under the
  Exchange Act (17 CFR 240.14a-12)</p>
  </td>
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  <td width=638 colspan=3 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt;
  height:7.1pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
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 <tr style='page-break-inside:avoid;height:7.1pt'>
  <td width=638 colspan=3 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt;
  height:7.1pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>[&nbsp;&nbsp;&nbsp;]&nbsp;&nbsp;Pre-commencement communications pursuant to Rule&nbsp;14d-2(b)
  under the Exchange Act (17 CFR 240.14d-2(b))</p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.1pt'>
  <td width=638 colspan=3 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt;
  height:7.1pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
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  <td width=638 colspan=3 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt;
  height:7.1pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>[&nbsp;&nbsp;&nbsp;]&nbsp;&nbsp;Pre-commencement communications pursuant to Rule&nbsp;13e-4(c)
  under the Exchange Act (17 CFR 240.13e-4(c))</p>
  </td>
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  <td width=638 colspan=3 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt;
  height:7.1pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>&nbsp;</p>
  </td>
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</table>

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>

<br
clear=all style='page-break-before:always'>


<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0
 style='border-collapse:collapse'>
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  <td width=79 colspan=2 valign=top style='width:59.4pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";color:windowtext; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">Item 2.02.</font></p>
  </td>
  <td width=559 colspan=3 valign=top style='width:419.4pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";color:windowtext; margin-left:0in; margin-right:0in; margin-top:0in'><u>
	<font size="2">Results of
  Operations and Financial Condition</font></u><font size="2">.</font></p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.75pt'>
  <td width=79 colspan=2 valign=top style='width:59.4pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
  <td width=559 colspan=3 valign=top style='width:419.4pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.75pt'>
  <td width=79 colspan=2 valign=top style='width:59.4pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
  <td width=559 colspan=3 valign=top style='width:419.4pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";color:windowtext; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">On August 12,
  2015, Macy's, Inc. (&quot;Macy's&quot;) issued a press release announcing
  Macy's sales, financial condition and results of operations for the 13 and 26
  weeks ended August 1, 2015.&nbsp; The full text of the press release is attached
  hereto as Exhibit 99.1 and is incorporated herein by reference.</font></p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";color:windowtext; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">The press release referred to above contains a non-GAAP
  financial measure of changes in comparable sales on an owned plus licensed
  basis.&nbsp; Macy's licenses third parties to operate certain departments in
  its stores and online and receives commissions from these third parties based
  on a percentage of their net sales. In its financial statements prepared in
  conformity with GAAP, Macy's includes these commissions (rather than sales of
  the departments licensed to third parties) in its net sales. Macy's does not,
  however, include any amounts in respect of licensed department sales (or any
  commissions earned on such sales) in its comparable sales calculation on an
  owned basis.&nbsp; Management believes that providing changes in comparable
  sales on an owned plus licensed basis is a useful measure to assist investors
  in evaluating Macy's ability to generate sales growth, whether through owned
  businesses or departments licensed to third parties, on a comparable basis.
  Management believes that providing changes in comparable sales on an owned
  plus licensed basis is particularly useful in evaluating the impact of
  changes in the manner in which certain departments are operated. However, the
  reader is cautioned that any non-GAAP financial measures provided by Macy's
  are provided in addition to, and not as alternatives for, Macy's reported
  results prepared in accordance with GAAP. Certain items that may have a
  significant impact on Macy's financial position, results of operations and
  cash flows must be considered when assessing Macy's actual financial
  condition and performance regardless of whether these items are included in
  these non-GAAP financial measures. In addition, you should note that the
  amounts received by Macy's on account of sales of departments licensed to
  third parties are limited to commissions received on such sales. Macy's
  believes that the amounts of commissions earned on sales of departments
  licensed to third parties are not material to its results of operations for
  the periods presented. The methods used by Macy's to calculate its non-GAAP
  financial measures may differ significantly from methods used by other
  companies to compute similar measures. As a result, any non-GAAP financial
  measures provided by Macy's may not be comparable to similar measures
  provided by other companies.</font></p>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";color:windowtext; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">&nbsp;</font></p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
 </tr>
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  <td width=79 colspan=2 valign=top style='width:59.4pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
  <td width=559 colspan=3 valign=top style='width:419.4pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.75pt'>
  <td width=79 colspan=2 valign=top style='width:59.4pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>Item 9.01.</p>
  </td>
  <td width=559 colspan=3 valign=top style='width:419.4pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";color:windowtext; margin-left:0in; margin-right:0in; margin-top:0in'><u>
	<font size="2">Financial
  Statements and Exhibits</font></u><font size="2">.</font></p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.75pt'>
  <td width=79 colspan=2 valign=top style='width:59.4pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
  <td width=559 colspan=3 valign=top style='width:419.4pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.75pt'>
  <td width=79 colspan=2 valign=top style='width:59.4pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
  <td width=54 valign=top style='width:40.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";color:windowtext; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">(d)</font></p>
  </td>
  <td width=505 colspan=2 valign=top style='width:378.9pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";color:windowtext; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">Exhibits</font></p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.1pt'>
  <td width=638 colspan=5 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt;
  height:7.1pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>&nbsp;</p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.0pt'>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
  <td width=66 colspan=2 valign=top style='width:49.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
  <td width=72 valign=top style='width:.75in;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";color:windowtext; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">99.1</font></p>
  </td>
  <td width=433 valign=top style='width:324.9pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";color:windowtext; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">Press Release
  of Macy's dated August 12, 2015.</font></p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.0pt'>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
  <td width=66 colspan=2 valign=top style='width:49.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
  <td width=72 valign=top style='width:.75in;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
  <td width=433 valign=top style='width:324.9pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.75pt'>
  <td width=638 colspan=5 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
 </tr>
 <tr height=0>
  <td width=67 style='border:none'></td>
  <td width=12 style='border:none'></td>
  <td width=54 style='border:none'></td>
  <td width=72 style='border:none'></td>
  <td width=433 style='border:none'></td>
 </tr>
</table>

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0
 style='border-collapse:collapse'>
 <tr style='page-break-inside:avoid;height:4.75pt'>
  <td width=638 colspan=2 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'><br clear=all style='page-break-before:always'>

  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>&nbsp;</p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>&nbsp;</p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>&nbsp;</p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.75pt'>
  <td width=638 colspan=2 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>MACY'S, INC.<br>
  <br>
  </b></p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.75pt'>
  <td width=638 colspan=2 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>&nbsp;</p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.75pt'>
  <td width=638 colspan=2 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <h3 style='margin-bottom:.0001pt;text-align:center;page-break-after:avoid;font-family:"Times New Roman","serif";color:windowtext;font-weight:normal;text-decoration:underline; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">SIGNATURE<br>
  <br>
  </font>
  </h3>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.75pt'>
  <td width=638 colspan=2 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>&nbsp;</p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.75pt'>
  <td width=638 colspan=2 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";color:windowtext; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">Pursuant to the
  requirements of the Securities Exchange Act of 1934, the registrant has duly
  caused this report to be signed on its behalf by the undersigned hereunto
  duly authorized.<br>
  <br>
  </font>
  </p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.75pt'>
  <td width=638 colspan=2 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.75pt'>
  <td width=259 valign=top style='width:2.7in;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
  <td width=379 valign=top style='width:3.95in;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";color:windowtext; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">MACY'S, INC.<br>
  <br>
  </font>
  </p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.75pt'>
  <td width=259 valign=top style='width:2.7in;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
  <td width=379 valign=top style='width:3.95in;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.75pt'>
  <td width=259 valign=top style='width:2.7in;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";color:windowtext; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">Dated:&nbsp;&nbsp;August
  12, 2015</font></p>
  </td>
  <td width=379 valign=top style='width:3.95in;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";color:windowtext; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">By:&nbsp;&nbsp;</font><u><font size="2">&nbsp;&nbsp; /s/
  Dennis J. Broderick&nbsp;&nbsp;&nbsp;&nbsp; </font> </u></p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.75pt'>
  <td width=259 valign=top style='width:2.7in;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
  <td width=379 valign=top style='width:3.95in;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";color:windowtext; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">Name:&nbsp;&nbsp;Dennis
  J. Broderick</font></p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.75pt'>
  <td width=259 valign=top style='width:2.7in;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
  <td width=379 valign=top style='width:3.95in;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>
	<font size="2">Title:&nbsp;&nbsp;Executive Vice President, General Counsel&nbsp;and
  Secretary<br>
  <br>
  </font>
  </p>
  </td>
 </tr>
</table>

<p style='margin:0in;margin-bottom:.0001pt;font-size:11.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>

<font size="2" face="Times New Roman">

<br
clear=all style='page-break-before:always'>


</font>


<p style='margin:0in;margin-bottom:.0001pt;font-size:11.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0
 style='border-collapse:collapse'>
 <tr style='page-break-inside:avoid;height:4.75pt'>
  <td width=638 colspan=4 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman";color:windowtext;text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><u>
	<font size="2">Index to Exhibits</font></u></p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.1pt'>
  <td width=638 colspan=4 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt;
  height:7.1pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>&nbsp;</p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.0pt'>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman";color:windowtext; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">Index </font> <u><font size="2">Number</font></u></p>
  </td>
  <td width=72 valign=top style='width:.75in;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
  <td width=498 valign=top style='width:373.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>&nbsp;</p>
  </td>
  <td style='border:none;padding:0in 0in 0in 0in' width=1>
	<p style='margin-bottom:.0001pt;font-family:"Times New Roman";color:windowtext; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">&nbsp;</font></td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.0pt'>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
  <td width=72 valign=top style='width:.75in;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
  <td width=498 valign=top style='width:373.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
  <td style='border:none;padding:0in 0in 0in 0in' width=1>
	<p style='margin-bottom:.0001pt;font-family:"Times New Roman";color:windowtext; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">&nbsp;</font></td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.0pt'>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman";color:windowtext; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">99.1</font></p>
  </td>
  <td width=72 valign=top style='width:.75in;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
  <td width=498 valign=top style='width:373.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman";color:windowtext; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">Press Release
  of Macy's dated August 12, 2015.</font></p>
  </td>
  <td style='border:none;padding:0in 0in 0in 0in' width=1>
	<p style='margin-bottom:.0001pt;font-family:"Times New Roman";color:windowtext; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">&nbsp;</font></td>
 </tr>
</table>

<p style='margin:0in;margin-bottom:.0001pt;font-size:11.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>

</div>

</body>

</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>esexhibit991.htm
<DESCRIPTION>PRESS RELEASE DATED AUGUST 12, 2015
<TEXT>



</head>

<body lang=EN-US link=blue vlink=purple>

<div style='page:WordSection1;'>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-left:10.0in;text-indent:.5in'><b>Exhibit 99.1</b></p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman","serif";margin:0in;margin-bottom:.0001pt;text-align:center'><b><font style="font-size: 36.0pt">macy's inc.</font></b></p>

<p style='mso-style-link:"Heading 7 Char";margin:0in;margin-bottom:.0001pt;page-break-after:avoid;font-size:12.0pt;font-family:"Times New Roman","serif";font-weight:bold;'><i>&nbsp;</i></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-left:4.5in'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify'><b><font style="font-size: 11.0pt">Contacts:</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify'><b><font style="font-size: 11.0pt">Media
- Jim Sluzewski</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-indent:.5in'><b><font style="font-size: 11.0pt">&nbsp;513/579-7764</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify'><b><font style="font-size: 11.0pt">Investor
&#150; Matt Stautberg</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-left:.5in;text-align:justify'><b><font style="font-size: 11.0pt">&nbsp;513/579-7780</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><b><font style="font-size: 11.0pt"><br>
FOR IMMEDIATE RELEASE</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.4pt;text-align:center'><b><font style="font-size: 14.0pt">MACY'S, INC. REPORTS SECOND QUARTER EARNINGS, ADJUSTS
2015 GUIDANCE AND OUTLINES NEW SALES GROWTH INITIATIVES </font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:.4pt;margin-right:0in;margin-bottom:.4pt;
margin-left:0in'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:.4pt;margin-right:0in;margin-bottom:.4pt;
margin-left:0in;text-indent:.5in;text-autospace:none'>CINCINNATI, Ohio, August 12, 2015 &#150; Macy's, Inc. today
reported sales and earnings for its second quarter of 2015, ended Aug. 1, 2015,
and adjusted guidance for 2015. In addition, the company provided updates on
key initiatives to grow profitable sales on a short-term and long-term basis.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:.4pt;margin-right:0in;margin-bottom:.4pt;
margin-left:0in;text-indent:.5in;text-autospace:none'>&nbsp;</p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:.4pt;margin-right:0in;margin-bottom:.4pt;margin-left:0in'><i><font style="font-size: 11.0pt">(Editor's Note: Macy's, Inc. this morning also issued
separate news releases announcing a joint venture in China and a real estate
agreement in Brooklyn.)</font></i></p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:.4pt;margin-right:0in;margin-bottom:.4pt;margin-left:0in'><i><font style="font-size: 11.0pt">&nbsp;</font></i></p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:.4pt;margin-right:0in;margin-bottom:.4pt;margin-left:0in;
text-indent:.5in'>The company's
earnings were 64 cents per diluted share for the second quarter of 2015. This
compares with earnings of 80 cents per diluted share in the second quarter of
2014. Macy's, Inc.'s diluted earnings per share in the first half of 2015 were
$1.19, compared with earnings per diluted share of $1.40 in the same period
last year. (Additional information on second quarter results is included
below.)</p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:.4pt;margin-right:0in;margin-bottom:.4pt;margin-left:0in;
text-indent:.5in'>&nbsp;</p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:.4pt;margin-right:0in;margin-bottom:.4pt;margin-left:0in;
text-indent:.5in'>&#147;We are
disappointed in our second quarter results, which were impacted by a variety of
factors, both internal to the company and in the macroeconomic environment. We
expect an improvement in trend beginning in the second half of 2015 based on a
range of promising new strategic initiatives, including those initially
announced in January, which we believe will transform our company in the years
ahead,&#148; said Terry J. Lundgren, Macy's chairman and chief executive officer. </p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:.4pt;margin-right:0in;margin-bottom:.4pt;
margin-left:0in;text-indent:.5in;text-autospace:none'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:.4pt;margin-right:0in;margin-bottom:.4pt;
margin-left:0in;text-indent:.5in;text-autospace:none'>&#147;In the second quarter, we removed a major Friends &amp;
Family promotional event from Macy's calendar. In addition, as a result of the previous
port slowdown, planned markdowns in many departments were delayed into the
second quarter to clear merchandise that arrived late. Moreover, throughout the
first half of the year, overall consumer demand has been restrained in many of the
categories of merchandise we sell, and the strong U.S. dollar has led to
significantly lower international tourist spending,&#148; Lundgren said. </p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:.4pt;margin-right:0in;margin-bottom:.4pt;
margin-left:0in;text-indent:.5in;text-autospace:none'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:.4pt;margin-right:0in;margin-bottom:.4pt;
margin-left:0in;text-indent:.5in;text-autospace:none'><font style="font-size: 11.0pt">&nbsp;&#147;Our work to enhance the performance of our business through organic
growth and new businesses is multi-dimensional and rooted in the
extraordinarily talented management team at Macy's, Inc. We remain committed to
enhancing value for our shareholders as we strengthen our position as a
world-class omnichannel retailer with a capability to serve consumers in new
ways,&#148; he added. </font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:.4pt;margin-right:0in;margin-bottom:.4pt;
margin-left:0in;text-indent:.5in;text-autospace:none'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:.4pt;margin-right:0in;margin-bottom:.4pt;
margin-left:0in;text-autospace:none'><b><u>Sales Growth Initiatives</u></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:.4pt;margin-right:0in;margin-bottom:.4pt;
margin-left:0in;text-autospace:none'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:.4pt;margin-right:0in;margin-bottom:.4pt;
margin-left:0in;text-autospace:none'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
company continues to aggressively position itself for sales growth in the short
and long term. Examples include:</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:.4pt;margin-right:0in;margin-bottom:.4pt;
margin-left:.75in;text-indent:-.25in;text-autospace:none'>&#149;&nbsp;&nbsp;&nbsp;
<font style="font-size: 11.0pt">Accelerating progress in the
company's fast-growing online business through integrated omnichannel buying and planning of merchandise, as well as
more strategic placement of inventories in stores and online fulfillment
centers. Expanded markets for Same Day Delivery, as previously announced, and nationwide
Buy Online Pick Up In Store provide Macy's and Bloomingdale's customers more
options than ever.</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:.4pt;margin-right:0in;margin-bottom:.4pt;
margin-left:.75in;text-indent:-.25in;text-autospace:none'>&#149;&nbsp;&nbsp;&nbsp;&nbsp;Piloting the first six
Macy's Backstage off-price stores in metro New York City, as previously
announced, beginning in September. All are expected to be in full operation for
the holiday season. Additional Backstage store locations are expected to be rolled
out beginning in 2016, based on learnings and customer response to the pilots.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:.4pt;margin-right:0in;margin-bottom:.4pt;
margin-left:.75in;text-indent:-.25in;text-autospace:none'>&#149;&nbsp;&nbsp;&nbsp;&nbsp;Beginning e-commerce
selling in China in late fall 2015 through a joint venture with Fung Retailing
Limited (for details, see a separate news release issued today).</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:.4pt;margin-right:0in;margin-bottom:.4pt;
margin-left:.75in;text-indent:-.25in;text-autospace:none'>&#149;&nbsp;&nbsp;&nbsp;&nbsp;<font style="font-size: 11.0pt">Opening another 10 Bluemercury free-standing
specialty beauty and spa locations before the end of 2015, bringing its store
count to 76. In addition, Bluemercury is using Macy's, Inc.'s omnichannel and
digital expertise to improve its e-commerce offering and drive online sales, and
four Bluemercury stores within Macy's locations will be opened this fall.</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:.4pt;margin-right:0in;margin-bottom:.4pt;
margin-left:0in;text-autospace:none'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:.4pt;margin-right:0in;margin-bottom:.4pt;
margin-left:0in;text-autospace:none'><b><u>Real Estate </u></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:.4pt;margin-right:0in;margin-bottom:.4pt;
margin-left:0in;text-indent:.5in;text-autospace:none'>&nbsp;</p>

<p class=MsoListParagraphCxSpFirst style='margin-top:.4pt;margin-right:0in;
margin-bottom:.4pt;margin-left:0in;text-indent:.5in'><font style="font-size: 11.0pt">Following a competitive bidding process conducted over the past year,
the company today announced an agreement to sell property in downtown Brooklyn
to Tishman Speyer (see separate news release) to take advantage of the inherent
real estate value in this prime location while making the Macy's store more
productive and easier for customers to navigate. This transaction will enable Macy's
to re-create its Fulton Street store while further enlivening one of New York
City&#146;s most dynamic neighborhoods. </font></p>

<p class=MsoListParagraphCxSpLast style='margin-top:.4pt;margin-right:0in;
margin-bottom:.4pt;margin-left:0in;text-indent:.5in'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:.4pt;margin-right:0in;margin-bottom:.4pt;
margin-left:0in;text-indent:.5in'><font style="font-size: 11.0pt">Macy's, Inc.
continually evaluates the highest and best use of its properties and its
overall real estate portfolio. In light of current market conditions, the
company has retained specialized real estate advisors, in addition to financial,
legal and tax advisors, to intensely study its real estate portfolio to
determine where opportunities exist that would further enhance the value of the
company. Macy's is actively working with its advisors and will communicate the
results of its analysis and review as soon as complete.</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:.4pt;margin-right:0in;margin-bottom:.4pt;
margin-left:0in;text-indent:.5in;text-autospace:none'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:.4pt;margin-right:0in;margin-bottom:.4pt;
margin-left:0in;text-autospace:none'><b><u>Sales </u></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:.4pt;margin-right:0in;margin-bottom:.4pt;
margin-left:0in;text-autospace:none'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:.4pt;margin-right:0in;margin-bottom:.4pt;
margin-left:0in;text-indent:.5in;text-autospace:none'><font style="font-size: 11.0pt">Sales in the second quarter of 2015 totaled $6.104 billion, a decrease
of 2.6 percent, compared with sales of $6.267 billion in the same period last
year. Comparable sales on an owned plus licensed basis were down by 1.5 percent
in the second quarter. On an owned basis, second quarter comparable sales
declined by 2.1 percent.</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:.4pt;margin-right:0in;margin-bottom:.4pt;
margin-left:0in;text-indent:.5in;text-autospace:none'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:.4pt;margin-right:0in;margin-bottom:.4pt;
margin-left:0in;text-indent:.5in;text-autospace:none'><font style="font-size: 11.0pt">For the year to date, Macy's, Inc. sales totaled $12.336 billion, down 1.7
percent from total sales of $12.546 billion in the first half of 2014.
Comparable sales on an owned plus licensed basis were down by 0.8 percent
year-to-date in 2015. On an owned basis, year-to-date comparable sales declined
by 1.4 percent.</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:.4pt;margin-right:0in;margin-bottom:.4pt;
margin-left:0in;text-indent:.5in;text-autospace:none'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:.4pt;margin-right:0in;margin-bottom:.4pt;
margin-left:0in;text-indent:.5in;text-autospace:none'><font style="font-size: 11.0pt">In the second quarter, the company closed Macy's stores in Pittsburgh,
PA, and West Orange, NJ, &nbsp;and opened three new Bluemercury locations. In the
fall season, scheduled store openings include a Macy's in Ponce, PR, a full-line
Bloomingdale's in Honolulu, six Macy's Backstage, one Bloomingdale's Outlet,
and 10 additional Bluemercury freestanding specialty stores. A Macy's store in
Los Angeles, CA, is scheduled to close in the fourth quarter of 2015 in
preparation for a new store to be built in the same mall.</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:.4pt;margin-right:0in;margin-bottom:.4pt;
margin-left:0in;text-indent:.5in;text-autospace:none'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:.4pt;margin-right:0in;margin-bottom:.4pt;
margin-left:0in;text-autospace:none'><b><u>Operating Income </u></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:.4pt;margin-right:0in;margin-bottom:.4pt;
margin-left:0in;text-autospace:none'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:.4pt;margin-right:0in;margin-bottom:.4pt;
margin-left:0in;text-indent:.5in;text-autospace:none'>Macy's, Inc.'s operating income totaled $436 million or 7.1
percent of sales for the quarter ended Aug. 1, 2015, compared with operating
income of $571 million or 9.1 percent of sales for the same period last year. </p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:.4pt;margin-right:0in;margin-bottom:.4pt;
margin-left:0in;text-indent:.5in;text-autospace:none'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:.4pt;margin-right:0in;margin-bottom:.4pt;
margin-left:0in;text-indent:.5in;text-autospace:none'>For the first half of 2015, Macy's, Inc.'s operating income
totaled $845 million or 6.8 percent of sales, compared with operating income of
$1.014 billion or 8.1 percent of sales for the same period last year. </p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:.4pt;margin-right:0in;margin-bottom:.4pt;
margin-left:0in;text-indent:.5in;text-autospace:none'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:.4pt;margin-right:0in;margin-bottom:.4pt;
margin-left:0in;text-autospace:none'><b><u>Cash Flow </u></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:.4pt;margin-right:0in;margin-bottom:.4pt;
margin-left:0in;text-indent:.5in;text-autospace:none'>Net cash provided by operating activities was $398 million
in the first half of 2015, compared with $736 million in the first six months
of last year. Net cash used by investing activities in the first half of 2015
was </p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:.4pt;margin-right:0in;margin-bottom:.4pt;
margin-left:0in;text-autospace:none'>$615
million, compared with $378 million a year ago. Net cash used by financing
activities in the first six months of 2015 was $1.186 billion, compared with $1.001
billion in the first half of 2014.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:.4pt;margin-right:0in;margin-bottom:.4pt;
margin-left:0in;text-indent:.5in;text-autospace:none'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:.4pt;margin-right:0in;margin-bottom:.4pt;
margin-left:0in;text-indent:.5in;text-autospace:none'><font style="font-size: 11.0pt">The company repurchased approximately 8.0 million shares of its common
stock for a total of approximately $552 million in the second quarter of 2015. In
the fiscal year to date, the company repurchased approximately 13.9 million
shares of its common stock for approximately $937 million. At Aug. 1, 2015, the
company had remaining authorization to repurchase up to approximately $1.6
billion of its common stock.</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:.4pt;margin-right:0in;margin-bottom:.4pt;
margin-left:0in;text-indent:.5in;text-autospace:none'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:.4pt;margin-right:0in;margin-bottom:.4pt;
margin-left:0in;text-autospace:none'><b><u>Looking Ahead </u></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:.4pt;margin-right:0in;margin-bottom:.4pt;
margin-left:0in;text-autospace:none'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:.4pt;margin-right:0in;margin-bottom:.4pt;
margin-left:0in;text-indent:.5in;text-autospace:none'>Primarily based on weaker-than-expected sales performance
in the first half, the company is reducing its full-year 2015 guidance for
comparable sales on an owned plus licensed basis to be approximately flat,
compared with previous guidance for growth of approximately 2 percent.
Comparable sales on an owned basis will be approximately 50 basis points lower
than on an owned plus licensed basis. The company expects total sales to be down by approximately 1
percent in 2015, compared to previous guidance for total sales growth of
approximately 1 percent. </p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:.4pt;margin-right:0in;margin-bottom:.4pt;
margin-left:0in;text-indent:.5in;text-autospace:none'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:.4pt;margin-right:0in;margin-bottom:.4pt;
margin-left:0in;text-indent:.5in;text-autospace:none'>The company is maintaining its guidance for 2015 earnings
per diluted share to be in the range of $4.70 to $4.80 as a result of the
expected $250 million gain on the sale of real estate in downtown Brooklyn,
which was not factored into previous calculations. &nbsp;&nbsp;&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:.4pt;margin-right:0in;margin-bottom:.4pt;
margin-left:0in;text-indent:.5in;text-autospace:none'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:.4pt;margin-right:0in;margin-bottom:.4pt;
margin-left:0in;text-autospace:none'><b><u>Important Information Regarding Financial Measures</u></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:.4pt;margin-right:0in;margin-bottom:.4pt;
margin-left:0in;text-indent:.5in;text-autospace:none'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:.4pt;margin-right:0in;margin-bottom:.4pt;
margin-left:0in;text-indent:.5in;text-autospace:none'>Please see the final pages of this news release for
important information regarding the calculation of the company's comparable
sales and non-GAAP financial measures.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:.4pt;margin-right:0in;margin-bottom:.4pt;
margin-left:0in;text-indent:.5in'><font style="font-size: 11.0pt">Macy's, Inc.,
with corporate offices in Cincinnati and New York, is one of the nation&#146;s
premier retailers, with fiscal 2014 sales of $28.105 billion. The company
operates about 885 stores in 45 states, the District of Columbia, Guam and
Puerto Rico under the names of Macy's, Bloomingdale's, Bloomingdale's Outlet
and Bluemercury, as well as the macys.com, bloomingdales.com and
bluemercury.com websites. Bloomingdale's in Dubai is operated by Al Tayer Group
LLC under a license agreement.</font></p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:.4pt;margin-right:0in;margin-bottom:.4pt;margin-left:0in;
text-indent:.5in'><font style="font-size: 11.0pt">All statements in this press
release that are not statements of historical fact are forward-looking
statements within the meaning of the Private Securities Litigation Reform Act
of 1995. Such statements are based upon the current beliefs and expectations of
Macy's management and are subject to significant risks and uncertainties.
Actual results could differ materially from those expressed in or implied by
the forward-looking statements contained in this release because of a variety
of factors, including conditions to, or changes in the timing of, proposed
transactions, prevailing interest rates and non-recurring charges, competitive
pressures from specialty stores, general merchandise stores, off-price and
discount stores, manufacturers' outlets, the Internet, mail-order catalogs and
television shopping and general consumer spending levels, including the impact
of the availability and level of consumer debt, the effect of weather and other
factors identified in documents filed by the company with the Securities and
Exchange Commission. </font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:.4pt;margin-right:0in;
margin-bottom:.4pt;margin-left:0in;text-align:center'>#&nbsp; #&nbsp; #</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:.4pt;margin-right:0in;margin-bottom:.4pt;
margin-left:0in'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:.4pt;margin-right:0in;margin-bottom:.4pt;
margin-left:0in'>(NOTE: Additional
information on Macy's, Inc., including past news releases, is available at www.macysinc.com/pressroom.<i> </i>A webcast of Macy's, Inc.'s call with
analysts and investors will be held today (Aug. 12) at <b>9 a.m. (ET)</b>. <font style="font-size: 11.0pt">(Note this is a new time for Macy's quarterly earnings
conference calls, as was previously announced.) Macy's, Inc.&#146;s webcast is
accessible to the media and general public via the company's Web site at
www.macysinc.com. Analysts and investors may call in on 1-800-334-8065, passcode 8552521. A replay of the conference call can be accessed on the Web
site or by calling 1-888-203-1112 (same passcode) about two hours after the
conclusion of the call.</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:.4pt;margin-right:0in;margin-bottom:.4pt;
margin-left:0in'>&nbsp;</p>

<pre style='mso-style-link:"HTML Preformatted Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Courier New";color:black;margin-top:.4pt;margin-right:0in;margin-bottom:.4pt;margin-left:
0in'>Macy's, Inc. is scheduled to present at the Goldman Sachs Global Retailing Conference at 8:05 a.m. ET on Wednesday, Sept. 9, in New York City. Media and investors</pre>
<pre style='mso-style-link:"HTML Preformatted Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Courier New";color:black;margin-top:.4pt;margin-right:0in;margin-bottom:.4pt;margin-left:
0in'>may access a live audio webcast of the presentation at www.macysinc.com/ir beginning at 8:05 a.m. on Sept. 9. A replay of the webcast will be available on the </pre>
<pre style='mso-style-link:"HTML Preformatted Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Courier New";color:black;margin-top:.4pt;margin-right:0in;margin-bottom:.4pt;margin-left:
0in'>company&#146;s website.) &nbsp;</pre>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-autospace:none'>&nbsp;</p>

<b><br
clear=all style='page-break-before:always'>
</b>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><b><font style="font-size: 11.0pt">MACY'S, INC.</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><u><font style="font-size: 11.0pt">Consolidated Statements of Income (Unaudited) (Note 1)</font></u></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><font style="font-size: 11.0pt">(All amounts in millions except percentages and per
share figures)</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;</font></p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=684
 style='border-collapse:collapse'>
 <tr style='page-break-inside:avoid'>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=171 colspan=2 valign=top style='width:128.25pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:-5.4pt;
  margin-bottom:.6pt;margin-left:-.9pt;text-align:center'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 13 Weeks Ended&nbsp;&nbsp;
  &nbsp;&nbsp;</font></p>
  </td>
  <td width=156 colspan=2 valign=top style='width:116.85pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:-5.4pt;
  margin-bottom:.6pt;margin-left:-.9pt;text-align:center'><font style="font-size: 11.0pt">&nbsp; &nbsp;&nbsp;13 Weeks
  Ended&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid'>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=171 colspan=2 valign=top style='width:128.25pt;padding:0in 5.4pt 0in 5.4pt'>
  <h4 style='mso-style-link:"Heading 4 Char";margin-top:0in;margin-right:-5.4pt;margin-bottom:0in;margin-left:-.9pt;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;font-size:11.0pt;font-family:"Times New Roman","serif";font-weight:normal;text-decoration:underline;margin-bottom:.6pt'>&nbsp;&nbsp;&nbsp;August 1,
  2015&nbsp;&nbsp;&nbsp;</h4>
  </td>
  <td width=156 colspan=2 valign=top style='width:116.85pt;padding:0in 5.4pt 0in 5.4pt'>
  <h4 style='mso-style-link:"Heading 4 Char";margin-top:0in;margin-right:-5.4pt;margin-bottom:0in;margin-left:-.9pt;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;font-size:11.0pt;font-family:"Times New Roman","serif";font-weight:normal;text-decoration:underline;margin-bottom:.6pt'>&nbsp;&nbsp;&nbsp;August 2,
  2014&nbsp;&nbsp;&nbsp;</h4>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'>&nbsp;</p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><font style="font-size: 11.0pt">% to</font></p>
  <h1 style='mso-style-link:"Heading 1 Char";margin:0in;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;font-size:11.0pt;font-family:"Times New Roman","serif";font-weight:normal;text-decoration:underline;margin-bottom:.6pt'>Net sales</h1>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'>&nbsp;</p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><font style="font-size: 11.0pt">% to</font></p>
  <h1 style='mso-style-link:"Heading 1 Char";margin:0in;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;font-size:11.0pt;font-family:"Times New Roman","serif";font-weight:normal;text-decoration:underline;margin-bottom:.6pt'>Net sales</h1>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;punctuation-wrap:hanging;
  text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:4.0pt'>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;punctuation-wrap:hanging;
  text-autospace:ideograph-numeric ideograph-other'>Net sales................................................................... </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">$&nbsp; 6,104&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">$&nbsp; 6,267&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:15.75pt'>
  <td width=357 valign=bottom style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt;
  height:15.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:right'><font style="font-size: 11.0pt">Cost of sales (Note 2).................................................. </font></p>
  </td>
  <td width=87 valign=bottom style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt;
  height:15.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">&nbsp; &nbsp;3,610</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=bottom style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt;
  height:15.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;59.1%</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=bottom style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt;
  height:15.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">&nbsp; &nbsp;3,672</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=73 valign=bottom style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt;
  height:15.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;58.6%</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;punctuation-wrap:hanging;
  text-autospace:ideograph-numeric ideograph-other'>Gross margin............................................................. </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">2,494&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">40.9%&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">2,595&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">41.4%&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;punctuation-wrap:hanging;
  text-autospace:ideograph-numeric ideograph-other'>Selling, general and
  administrative expenses................ </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;(2,058</font></u><font style="font-size: 11.0pt">)</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">(33.8%</font></u><font style="font-size: 11.0pt">)</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;(2,024</font></u><font style="font-size: 11.0pt">)</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">(32.3%</font></u><font style="font-size: 11.0pt">)</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;punctuation-wrap:hanging;
  text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;punctuation-wrap:hanging;
  text-autospace:ideograph-numeric ideograph-other'>Operating income...................................................... </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">436&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">7.1%&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">571&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">9.1%&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;punctuation-wrap:hanging;
  text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'>&nbsp;</p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'>&nbsp;</p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'>&nbsp;</p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;punctuation-wrap:hanging;
  text-autospace:ideograph-numeric ideograph-other'>Interest expense &#150; net............................................... </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;(93</font></u><font style="font-size: 11.0pt">)</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp; (100</font></u><font style="font-size: 11.0pt">)</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;punctuation-wrap:hanging;
  text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'>&nbsp;</p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'>&nbsp;</p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'>&nbsp;</p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'>Income before income taxes...................................... </p>
  </td>
  <td width=87 valign=bottom style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">343&nbsp;</font></p>
  </td>
  <td width=84 valign=bottom style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=bottom style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">471&nbsp;</font></p>
  </td>
  <td width=73 valign=bottom style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'>Federal, state and local income
  tax&nbsp;expense (Note 3)... </p>
  </td>
  <td width=87 valign=bottom style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp; (126</font></u><font style="font-size: 11.0pt">)</font></p>
  </td>
  <td width=84 valign=bottom style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'>&nbsp;</p>
  </td>
  <td width=83 valign=bottom style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp; (179</font></u><font style="font-size: 11.0pt">)</font></p>
  </td>
  <td width=73 valign=bottom style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;punctuation-wrap:hanging;
  text-autospace:ideograph-numeric ideograph-other'>Net income............................................................... </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">$&nbsp;&nbsp;&nbsp; &nbsp;217</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'>&nbsp;</p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">$&nbsp;&nbsp;&nbsp; &nbsp;292</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'>&nbsp;</p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'>&nbsp;</p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'>&nbsp;</p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'>Basic earnings per share............................................ </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.65</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.81</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'>&nbsp;</p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'>&nbsp;</p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;punctuation-wrap:hanging;
  text-autospace:ideograph-numeric ideograph-other'>Diluted earnings per share.......................................... </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.64</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.80</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'>&nbsp;</p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'>&nbsp;</p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">Average
  common shares:</font></p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'>&nbsp;</p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'>&nbsp;</p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;punctuation-wrap:hanging;
  text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic.................................................................. </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">335.7&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">359.2&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;punctuation-wrap:hanging;
  text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted................................................................ </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">341.0&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">365.4&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;punctuation-wrap:hanging;
  text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'>&nbsp;</p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'>&nbsp;</p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;punctuation-wrap:hanging;
  text-autospace:ideograph-numeric ideograph-other'>End of period common shares
  outstanding.................. </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">331.0&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">353.5&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'>&nbsp;</p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'>&nbsp;</p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;punctuation-wrap:hanging;
  text-autospace:ideograph-numeric ideograph-other'>Depreciation and
  amortization expense....................... </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">$&nbsp;&nbsp;&nbsp;&nbsp; 261&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">$&nbsp;&nbsp;&nbsp;&nbsp; 254&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:justify'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:justify'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:justify'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:justify'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:justify'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:justify'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:justify'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:justify'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<b><br
clear=all style='page-break-before:always'>
</b>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><b><font style="font-size: 11.0pt">MACY'S, INC.</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><u><font style="font-size: 11.0pt">Consolidated Statements of Income (Unaudited)</font></u></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='mso-style-link:"Body Text 3 Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">Notes:</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:justify'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:0in;margin-bottom:.6pt;
margin-left:.25in;text-align:justify;text-indent:-.25in'><font style="font-size: 11.0pt">
(1)&nbsp; Because of the seasonal nature of
the retail business, the results of operations for the 13 weeks ended August 1,
2015 and August 2, 2014 (which do not include the Christmas season) are not
necessarily indicative of such results for the fiscal year.</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:0in;margin-bottom:.6pt;
margin-left:.25in;text-align:justify'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:0in;margin-bottom:.6pt;
margin-left:.25in;text-align:justify;text-indent:-.25in'><font style="font-size: 11.0pt">
(2)&nbsp; Merchandise inventories are valued
at the lower of cost or market using the last-in, first-out (LIFO) retail
inventory method. Application of the LIFO retail inventory method did not result
in the recognition of any LIFO charges or credits affecting cost of sales for
the 13 weeks ended August 1, 2015 or August 2, 2014.</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:0in;margin-bottom:.6pt;
margin-left:.25in;text-align:justify;text-indent:-.25in'><font style="font-size: 11.0pt">(3)&nbsp;&nbsp;Federal, state and local income
taxes differ from the federal income tax statutory rate of 35% principally
because of the effect of state and local taxes, including the settlement of
various tax issues and tax examinations.
</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:0in;margin-bottom:.6pt;
margin-left:.25in;text-align:justify'><font style="font-size: 11.0pt">&nbsp;</font></p>

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<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<b><br
clear=all style='page-break-before:always'>
</b>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><b><font style="font-size: 11.0pt">MACY'S, INC.</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><u><font style="font-size: 11.0pt">Consolidated Statements of Income (Unaudited) (Note 1)</font></u></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><font style="font-size: 11.0pt">(All amounts in millions except percentages and per
share figures)</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;</font></p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=684
 style='border-collapse:collapse'>
 <tr style='page-break-inside:avoid'>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=171 colspan=2 valign=top style='width:128.25pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:-5.4pt;
  margin-bottom:.6pt;margin-left:-.9pt;text-align:center'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 26 Weeks Ended&nbsp;&nbsp; &nbsp;&nbsp;</font></p>
  </td>
  <td width=156 colspan=2 valign=top style='width:116.85pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:-5.4pt;
  margin-bottom:.6pt;margin-left:-.9pt;text-align:center'><font style="font-size: 11.0pt">&nbsp; &nbsp;&nbsp;26 Weeks
  Ended&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid'>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=171 colspan=2 valign=top style='width:128.25pt;padding:0in 5.4pt 0in 5.4pt'>
  <h4 style='mso-style-link:"Heading 4 Char";margin-top:0in;margin-right:-5.4pt;margin-bottom:0in;margin-left:-.9pt;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;font-size:11.0pt;font-family:"Times New Roman","serif";font-weight:normal;text-decoration:underline;margin-bottom:.6pt'>&nbsp;&nbsp;&nbsp;August 1,
  2015&nbsp;&nbsp;&nbsp;</h4>
  </td>
  <td width=156 colspan=2 valign=top style='width:116.85pt;padding:0in 5.4pt 0in 5.4pt'>
  <h4 style='mso-style-link:"Heading 4 Char";margin-top:0in;margin-right:-5.4pt;margin-bottom:0in;margin-left:-.9pt;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;font-size:11.0pt;font-family:"Times New Roman","serif";font-weight:normal;text-decoration:underline;margin-bottom:.6pt'>&nbsp;&nbsp;&nbsp;August 2,
  2014&nbsp;&nbsp;&nbsp;</h4>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'>&nbsp;</p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><font style="font-size: 11.0pt">% to</font></p>
  <h1 style='mso-style-link:"Heading 1 Char";margin:0in;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;font-size:11.0pt;font-family:"Times New Roman","serif";font-weight:normal;text-decoration:underline;margin-bottom:.6pt'>Net sales</h1>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'>&nbsp;</p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><font style="font-size: 11.0pt">% to</font></p>
  <h1 style='mso-style-link:"Heading 1 Char";margin:0in;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;font-size:11.0pt;font-family:"Times New Roman","serif";font-weight:normal;text-decoration:underline;margin-bottom:.6pt'>Net sales</h1>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;punctuation-wrap:hanging;
  text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:4.0pt'>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;punctuation-wrap:hanging;
  text-autospace:ideograph-numeric ideograph-other'>Net sales................................................................... </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">$ 12,336&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">$ 12,546&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:15.75pt'>
  <td width=357 valign=bottom style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt;
  height:15.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:right'><font style="font-size: 11.0pt">Cost of sales (Note 2)................................................. </font></p>
  </td>
  <td width=87 valign=bottom style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt;
  height:15.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">&nbsp; &nbsp;7,410</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=bottom style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt;
  height:15.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;60.1%</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=bottom style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt;
  height:15.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">&nbsp; &nbsp;7,508</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=73 valign=bottom style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt;
  height:15.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;59.8%</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;punctuation-wrap:hanging;
  text-autospace:ideograph-numeric ideograph-other'>Gross margin............................................................. </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">4,926&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">39.9%&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">5,038&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">40.2%&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;punctuation-wrap:hanging;
  text-autospace:ideograph-numeric ideograph-other'>Selling, general and
  administrative expenses................ </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;(4,081</font></u><font style="font-size: 11.0pt">)</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">(33.1%</font></u><font style="font-size: 11.0pt">)</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;(4,024</font></u><font style="font-size: 11.0pt">)</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">(32.1%</font></u><font style="font-size: 11.0pt">)</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;punctuation-wrap:hanging;
  text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;punctuation-wrap:hanging;
  text-autospace:ideograph-numeric ideograph-other'>Operating income...................................................... </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">845&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">6.8%&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">1,014&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">8.1%&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;punctuation-wrap:hanging;
  text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'>&nbsp;</p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'>&nbsp;</p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'>&nbsp;</p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;punctuation-wrap:hanging;
  text-autospace:ideograph-numeric ideograph-other'>Interest expense &#150; net............................................... </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp; (188</font></u><font style="font-size: 11.0pt">)</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp; (200</font></u><font style="font-size: 11.0pt">)</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;punctuation-wrap:hanging;
  text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'>&nbsp;</p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'>&nbsp;</p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'>&nbsp;</p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'>Income before income taxes....................................... </p>
  </td>
  <td width=87 valign=bottom style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">657&nbsp;</font></p>
  </td>
  <td width=84 valign=bottom style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=bottom style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">814&nbsp;</font></p>
  </td>
  <td width=73 valign=bottom style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'>Federal, state and local income
  tax&nbsp;expense (Note 3)... </p>
  </td>
  <td width=87 valign=bottom style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp; (247</font></u><font style="font-size: 11.0pt">)</font></p>
  </td>
  <td width=84 valign=bottom style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'>&nbsp;</p>
  </td>
  <td width=83 valign=bottom style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp; (298</font></u><font style="font-size: 11.0pt">)</font></p>
  </td>
  <td width=73 valign=bottom style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;punctuation-wrap:hanging;
  text-autospace:ideograph-numeric ideograph-other'>Net income............................................................... </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">$&nbsp;&nbsp;&nbsp; &nbsp;410</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'>&nbsp;</p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">$&nbsp;&nbsp;&nbsp; &nbsp;516</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'>&nbsp;</p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'>&nbsp;</p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'>&nbsp;</p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'>Basic earnings per share........................................... </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">$&nbsp;&nbsp;&nbsp;&nbsp;1.21</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">$&nbsp;&nbsp;&nbsp;&nbsp;1.42</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'>&nbsp;</p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'>&nbsp;</p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;punctuation-wrap:hanging;
  text-autospace:ideograph-numeric ideograph-other'>Diluted earnings per share......................................... </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">$&nbsp;&nbsp;&nbsp;&nbsp;1.19</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">$&nbsp;&nbsp;&nbsp;&nbsp;1.40</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'>&nbsp;</p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'>&nbsp;</p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">Average
  common shares:</font></p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'>&nbsp;</p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'>&nbsp;</p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;punctuation-wrap:hanging;
  text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic................................................................. </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">338.2&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">362.5&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;punctuation-wrap:hanging;
  text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted.............................................................. </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">343.7&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">369.0&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;punctuation-wrap:hanging;
  text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'>&nbsp;</p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'>&nbsp;</p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;punctuation-wrap:hanging;
  text-autospace:ideograph-numeric ideograph-other'>End of period common shares
  outstanding.................. </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">331.0&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">353.5&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'>&nbsp;</p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'>&nbsp;</p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;punctuation-wrap:hanging;
  text-autospace:ideograph-numeric ideograph-other'>Depreciation and
  amortization expense....................... </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">$&nbsp;&nbsp;&nbsp;&nbsp; 520&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:8.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">$&nbsp;&nbsp;&nbsp;&nbsp; 507&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:justify'><font style="font-size: 11.0pt">&nbsp;</font></p>

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<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:justify'><font style="font-size: 11.0pt">&nbsp;</font></p>

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<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<b><br
clear=all style='page-break-before:always'>
</b>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><b><font style="font-size: 11.0pt">MACY'S, INC.</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><u><font style="font-size: 11.0pt">Consolidated Statements of Income (Unaudited)</font></u></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='mso-style-link:"Body Text 3 Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">Notes:</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:justify'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:0in;margin-bottom:.6pt;
margin-left:.25in;text-align:justify;text-indent:-.25in'><font style="font-size: 11.0pt">
(1)&nbsp; Because of the seasonal nature of
the retail business, the results of operations for the 26 weeks ended August 1,
2015 and August 2, 2014 (which do not include the Christmas season) are not
necessarily indicative of such results for the fiscal year.</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:justify'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:0in;margin-bottom:.6pt;
margin-left:.25in;text-align:justify;text-indent:-.25in'><font style="font-size: 11.0pt">(2)&nbsp;&nbsp;Merchandise inventories are valued
at the lower of cost or market using the last-in, first-out (LIFO) retail
inventory method. Application of the LIFO retail inventory method did not result
in the recognition of any LIFO charges or credits affecting cost of sales for
the 26 weeks ended August 1, 2015 or August 2, 2014.</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:0in;margin-bottom:.6pt;
margin-left:.25in;text-align:justify;text-indent:-.25in'><font style="font-size: 11.0pt">(3)&nbsp;&nbsp;Federal, state and local income
taxes differ from the federal income tax statutory rate of 35% principally
because of the effect of state and local taxes, including the settlement of
various tax issues and tax examinations.
</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:0in;margin-bottom:.6pt;
margin-left:.25in;text-align:justify'><font style="font-size: 11.0pt">&nbsp;</font></p>

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<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

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<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

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<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<b><br
clear=all style='page-break-before:always'>
</b>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><b><font style="font-size: 11.0pt">MACY'S, INC.</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><u><font style="font-size: 11.0pt">Consolidated Balance Sheets (Unaudited)</font></u></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><font style="font-size: 11.0pt">(millions)</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><font style="font-size: 10.0pt">&nbsp;</font></p>

<table class=MsoNormalTable border=1 cellspacing=0 cellpadding=0 width=650
 style='width:487.8pt;border-collapse:collapse;border:none'>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><font style="font-size: 11.0pt">&nbsp;&nbsp;August 1,</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><font style="font-size: 11.0pt">January 31,</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><font style="font-size: 11.0pt">&nbsp;&nbsp;August 2,</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2015&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2015&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2014&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">ASSETS:</font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'>&nbsp;</p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'>&nbsp;</p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;punctuation-wrap:hanging;
  text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp; Current Assets:</p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash
  and cash equivalents.................................. </font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">$&nbsp; &nbsp;&nbsp;&nbsp;843</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">$&nbsp; 2,246</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">$&nbsp; 1,630</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Receivables....................................................... </font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">334</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">424</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">352</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Merchandise
  inventories..................................... </font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">5,622</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">5,516</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">5,416</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid
  expenses and other current assets........... </font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 437</font></u></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;493</font></u></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 399</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total
  Current Assets....................................... </font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">7,236</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">8,679</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">7,797</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;&nbsp; Property
  and Equipment &#150; net............................... </font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">7,704</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">7,800</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">7,771</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;&nbsp; Goodwill.............................................................. </font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">3,897</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">3,743</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">3,743</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;&nbsp; Other
  Intangible Assets &#150; net............................... </font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">523</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">496</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">512</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;&nbsp; Other
  Assets....................................................... </font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 756</font></u></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 743</font></u></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 783</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total
  Assets.................................................. </font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">$20,116</font></u></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">$21,461</font></u></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">$20,606</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">LIABILITIES
  AND SHAREHOLDERS&#146; EQUITY:</font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;&nbsp; Current
  Liabilities:</font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short-term
  debt................................................ </font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">$&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;83</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">$&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;76</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">$&nbsp; &nbsp;&nbsp;&nbsp;483</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Merchandise
  accounts payable.......................... </font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">2,067</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">1,693</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">1,990</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts
  payable and accrued liabilities............. </font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">2,278</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">3,109</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">2,150</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;punctuation-wrap:hanging;
  text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income taxes.................................................... </p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">64</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">296</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">120</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred
  income taxes...................................... </font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 367</font></u></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 362</font></u></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 393</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total
  Current Liabilities.................................. </font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">4,859</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">5,536</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">5,136</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;&nbsp; Long-Term
  Debt................................................. </font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">7,181</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">7,265</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">6,729</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;&nbsp; Deferred
  Income Taxes....................................... </font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">1,082</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">1,081</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">1,287</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;&nbsp; Other
  Liabilities................................................... </font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">2,150</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">2,201</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">1,647</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;&nbsp; Shareholders'
  Equity............................................. </font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp; 4,844</font></u></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp; 5,378</font></u></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp; 5,807</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'>&nbsp;</p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:6.75pt'>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt;
  height:6.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total
  Liabilities and Shareholders' Equity.......... </font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt;
  height:6.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">$20,116</font></u></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt;
  height:6.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">$21,461</font></u></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt;
  height:6.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:9.2pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">$20,606</font></u></p>
  </td>
 </tr>
</table>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;font-size:10.5pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;font-size:10.5pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;font-size:10.5pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">Note:
Certain reclassifications were made to prior year's amounts to conform with the
classifications of such amounts in the most recent years.</font></p>

<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;font-size:10.5pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;font-size:10.5pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;font-size:10.5pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;font-size:10.5pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;font-size:10.5pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;font-size:10.5pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;font-size:10.5pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;font-size:10.5pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;font-size:10.5pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;font-size:10.5pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;font-size:10.5pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;font-size:10.5pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<b><br
clear=all style='page-break-before:always'>
</b>

<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;font-size:10.5pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><b><font style="font-size: 11.0pt">MACY'S, INC.</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><u><font style="font-size: 11.0pt">Consolidated Statements of Cash Flows (Unaudited)</font></u></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><font style="font-size: 11.0pt">(millions)</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 9.0pt">&nbsp;</font></p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=643
 style='border-collapse:collapse'>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h2 style='mso-style-link:"Heading 2 Char";margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;page-break-after:avoid;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";font-weight:bold;text-decoration:underline;margin-top:0in;margin-right:0in;margin-bottom:.6pt;
  margin-left:0in;text-align:center'>26 Weeks Ended</h2>
  <h3 style='mso-style-link:"Heading 3 Char";margin:0in;margin-bottom:.0001pt;page-break-after:avoid;punctuation-wrap:simple;text-autospace:none;font-size:12.0pt;font-family:"Times New Roman","serif";font-weight:normal;text-decoration:underline;margin-bottom:.6pt;text-align:center'><font style="font-size: 11.0pt">August 1, 2015&nbsp;&nbsp;&nbsp; </font></h3>
  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h2 style='mso-style-link:"Heading 2 Char";margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;page-break-after:avoid;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";font-weight:bold;text-decoration:underline;margin-top:0in;margin-right:0in;margin-bottom:.6pt;
  margin-left:0in;text-align:center'>26 Weeks Ended</h2>
  <h3 style='mso-style-link:"Heading 3 Char";margin:0in;margin-bottom:.0001pt;page-break-after:avoid;punctuation-wrap:simple;text-autospace:none;font-size:12.0pt;font-family:"Times New Roman","serif";font-weight:normal;text-decoration:underline;margin-bottom:.6pt;text-align:center'><font style="font-size: 11.0pt">August 2, 2014</font></h3>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;punctuation-wrap:hanging;
  text-autospace:ideograph-numeric ideograph-other'>Cash flows from operating
  activities:</p>
  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'>&nbsp;&nbsp; Net income.................................................................... </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:.25in;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;410&nbsp;</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:.25in;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;516&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;punctuation-wrap:hanging;
  text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp; Adjustments to reconcile
  net income to net cash<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;provided by operating activities:</p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:.25in;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:.25in;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation
  and amortization................................... </font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:.25in;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">520&nbsp;</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:.25in;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">507&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock-based
  compensation expense.......................... </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:.25in;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">47&nbsp;</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:.25in;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">38&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization
  of financing costs and premium on </font></p>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;punctuation-wrap:hanging;
  text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;acquired
  debt........................................................ </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:.25in;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">(2)</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:.25in;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">(3)</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;punctuation-wrap:hanging;
  text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in assets
  and liabilities:</p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:.25in;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:.25in;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;punctuation-wrap:hanging;
  text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;Decrease
  in receivables....................................... </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:17.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">92&nbsp;</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:17.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">86&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;punctuation-wrap:hanging;
  text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp; (Increase)
  decrease in merchandise inventories...... </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:17.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">(77)</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:17.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">141&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:-9.9pt;margin-bottom:
  .6pt;margin-left:0in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;Increase in prepaid expenses and other
  current assets. </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:.25in;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">(29)</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:.25in;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">(14)</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:-5.4pt;margin-bottom:
  .6pt;margin-left:0in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;Increase in other assets not
  separately identified..... </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:.25in;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">-&nbsp;</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:.25in;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">(31)</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;punctuation-wrap:hanging;
  text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;Increase
  in merchandise accounts payable............. </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:.25in;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">340&nbsp;</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:.25in;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">276&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;Decrease in
  accounts payable, accrued liabilities</p>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and other
  items not separately identified........... </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:.25in;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">(625)</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:.25in;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">(531)</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;punctuation-wrap:hanging;
  text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;Decrease
  in current income taxes......................... </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:.25in;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">(232)</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:.25in;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">(242)</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;punctuation-wrap:hanging;
  text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;Increase
  (decrease) in deferred income taxes........ </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:.25in;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">(20)</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:.25in;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">2&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;punctuation-wrap:hanging;
  text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;Decrease in
  other liabilities not separately identified&nbsp;&nbsp; </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:.25in;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;(26</font></u><font style="font-size: 11.0pt">)</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:.25in;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;(9</font></u><font style="font-size: 11.0pt">)</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
  cash provided by operating activities............. </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:.25in;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;398</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:.25in;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;736</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'>&nbsp;</p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:.25in;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:.25in;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">Cash
  flows from investing activities:</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:.25in;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:.25in;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;punctuation-wrap:hanging;
  text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp; Purchase of property and
  equipment............................... </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:.25in;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">(367)</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:.25in;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">(335)</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;punctuation-wrap:hanging;
  text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp; Capitalized software...................................................... </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:.25in;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">(144)</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:.25in;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">(116)</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;punctuation-wrap:hanging;
  text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp; Acquisition of
  Bluemercury, Inc., net of cash acquired..... </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:.25in;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">(212)</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:.25in;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">-&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;punctuation-wrap:hanging;
  text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp; Disposition of property
  and equipment............................. </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:.25in;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4&nbsp;</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:.25in;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;24&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;punctuation-wrap:hanging;
  text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp; Other, net.....................................................................&nbsp;&nbsp; </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:.25in;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;104</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:.25in;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;49</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
  cash used by investing activities................... </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:.25in;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp; &nbsp;(615</font></u><font style="font-size: 11.0pt">)</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:.25in;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp; &nbsp;(378</font></u><font style="font-size: 11.0pt">)</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'>&nbsp;</p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:.25in;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;</font></u></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:.25in;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'><br clear=all
  style='page-break-before:always'>

  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">Cash
  flows from financing activities:</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:.25in;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;</font></u></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:.25in;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;punctuation-wrap:hanging;
  text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp; Debt issued................................................................... </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:17.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">-&nbsp;</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:17.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">500&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;punctuation-wrap:hanging;
  text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp; Financing costs.............................................................. </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:17.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">-&nbsp;</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:17.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">(4)</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;punctuation-wrap:hanging;
  text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp; Debt repaid................................................................... </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:17.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">(72)</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:17.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">(459)</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;punctuation-wrap:hanging;
  text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp; Dividends paid............................................................... </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:17.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">(227)</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:17.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">(204)</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;punctuation-wrap:hanging;
  text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp; Decrease in outstanding
  checks...................................... </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:17.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">(136)</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:17.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">(61)</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;punctuation-wrap:hanging;
  text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp; Acquisition of treasury
  stock........................................... </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:17.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">(909)</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:17.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">(922)</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;punctuation-wrap:hanging;
  text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp; Issuance of common stock.............................................. </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:17.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 158</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:17.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 149</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;punctuation-wrap:hanging;
  text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
  cash used by financing activities.................... </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:17.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;(1,186</font></u><font style="font-size: 11.0pt">)</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:17.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;(1,001</font></u><font style="font-size: 11.0pt">)</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'>&nbsp;</p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h2 style='mso-style-link:"Heading 2 Char";margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;page-break-after:avoid;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";font-weight:bold;text-decoration:underline;margin-top:0in;margin-right:17.1pt;margin-bottom:.6pt;
  margin-left:.25in;text-align:right'>&nbsp;</h2>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h2 style='mso-style-link:"Heading 2 Char";margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;page-break-after:avoid;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";font-weight:bold;text-decoration:underline;margin-top:0in;margin-right:17.1pt;margin-bottom:.6pt;
  margin-left:.25in;text-align:right'>&nbsp;</h2>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;punctuation-wrap:hanging;
  text-autospace:ideograph-numeric ideograph-other'>Net decrease in cash and
  cash equivalents.......................... </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:17.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">(1,403)</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:17.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">(643)</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;punctuation-wrap:hanging;
  text-autospace:ideograph-numeric ideograph-other'>Cash and cash equivalents
  at beginning of period................ </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:17.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">&nbsp; 2,246</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:17.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">&nbsp; 2,273</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:17.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:17.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;punctuation-wrap:hanging;
  text-autospace:ideograph-numeric ideograph-other'>Cash and cash equivalents
  at end of period.......................... </p>
  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:17.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">$&nbsp;&nbsp;&nbsp;&nbsp;843</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:17.1pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">$&nbsp;1,630</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;font-size:10.5pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;font-size:10.5pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;font-size:10.5pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">Note:
Certain reclassifications were made to prior year&#146;s amounts to conform with the
classifications of such amounts in the most recent years.</font></p>

<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;font-size:10.5pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;font-size:10.5pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<b><br
clear=all style='page-break-before:always'>
</b>

<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;font-size:10.5pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><b><font style="font-size: 11.0pt">MACY'S, INC.</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><u><font style="font-size: 11.0pt">Important Information Regarding Non-GAAP Financial
Measures</font></u></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><font style="font-size: 11.0pt">(All amounts in millions except percentages)</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:justify;text-autospace:
none'><font style="font-size: 11.0pt">The Company reports its financial results
in accordance with generally accepted accounting principles (GAAP). However,
management believes that certain non-GAAP financial measures provide users of
the Company's financial information with additional useful information in
evaluating operating performance. See the table below for supplemental
financial data and a corresponding reconciliation to the most directly
comparable GAAP financial measures. This non-GAAP financial measure should be
viewed as supplementing, and not as an alternative or substitute for, the
Company's financial results prepared in accordance with GAAP. Certain of the
items that may be excluded or included in this non-GAAP financial measure may
be significant items that could impact the Company's financial position,
results of operations and cash flows and should therefore be considered in
assessing the Company's actual financial condition and performance. Additionally,
the amounts received by the Company on account of sales of departments licensed
to third parties are limited to commissions received on such sales. The methods
used by the Company to calculate its non-GAAP financial measures may differ
significantly from methods used by other companies to compute similar measures.
As a result, any non-GAAP financial measures presented herein may not be
comparable to similar measures provided by other companies.</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:justify;text-autospace:
none'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:justify;text-autospace:
none'><font style="font-size: 11.0pt">Macy's, Inc. believes that providing
changes in comparable sales on an owned plus licensed basis, which includes the
impact of growth in comparable sales of departments licensed to third parties
supplementally to its results of operations calculated in accordance with GAAP
assists in evaluating the Company's ability to generate sales growth, whether
through owned businesses or departments licensed to third parties, on a
comparable basis, and in evaluating the impact of changes in the manner in
which certain departments are operated.</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:justify;text-autospace:
none'><font style="font-size: 11.0pt">&nbsp;</font></p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=655
 style='border-collapse:collapse'>
 <tr>
  <td width=427 valign=top style='width:4.45in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h2 style='mso-style-link:"Heading 2 Char";margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;page-break-after:avoid;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";font-weight:bold;text-decoration:underline;margin-top:0in;margin-right:0in;margin-bottom:.6pt;
  margin-left:0in;text-align:center'>13 Weeks </h2>
  <h2 style='mso-style-link:"Heading 2 Char";margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;page-break-after:avoid;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";font-weight:bold;text-decoration:underline;margin-top:0in;margin-right:0in;margin-bottom:.6pt;
  margin-left:0in;text-align:center'>Ended</h2>
  <h3 style='mso-style-link:"Heading 3 Char";margin:0in;margin-bottom:.0001pt;page-break-after:avoid;punctuation-wrap:simple;text-autospace:none;font-size:12.0pt;font-family:"Times New Roman","serif";font-weight:normal;text-decoration:underline;margin-bottom:.6pt;text-align:center'>August 1,&nbsp; </h3>
  <h3 style='mso-style-link:"Heading 3 Char";margin:0in;margin-bottom:.0001pt;page-break-after:avoid;punctuation-wrap:simple;text-autospace:none;font-size:12.0pt;font-family:"Times New Roman","serif";font-weight:normal;text-decoration:underline;margin-bottom:.6pt;text-align:center'><font style="font-size: 11.0pt">2015&nbsp; </font></h3>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h2 style='mso-style-link:"Heading 2 Char";margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;page-break-after:avoid;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";font-weight:bold;text-decoration:underline;margin-top:0in;margin-right:0in;margin-bottom:.6pt;
  margin-left:0in;text-align:center'>26 Weeks </h2>
  <h2 style='mso-style-link:"Heading 2 Char";margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;page-break-after:avoid;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";font-weight:bold;text-decoration:underline;margin-top:0in;margin-right:0in;margin-bottom:.6pt;
  margin-left:0in;text-align:center'>Ended</h2>
  <h3 style='mso-style-link:"Heading 3 Char";margin:0in;margin-bottom:.0001pt;page-break-after:avoid;punctuation-wrap:simple;text-autospace:none;font-size:12.0pt;font-family:"Times New Roman","serif";font-weight:normal;text-decoration:underline;margin-bottom:.6pt;text-align:center'>August 1,&nbsp; </h3>
  <h3 style='mso-style-link:"Heading 3 Char";margin:0in;margin-bottom:.0001pt;page-break-after:avoid;punctuation-wrap:simple;text-autospace:none;font-size:12.0pt;font-family:"Times New Roman","serif";font-weight:normal;text-decoration:underline;margin-bottom:.6pt;text-align:center'><font style="font-size: 11.0pt">2015&nbsp; </font></h3>
  </td>
 </tr>
 <tr>
  <td width=427 valign=top style='width:4.45in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;punctuation-wrap:hanging;
  text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=427 valign=top style='width:4.45in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'>&nbsp;&nbsp; Decrease in comparable sales
  on an owned basis (Note 1)........ </p>
  </td>
  <td width=114 valign=bottom style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:12.6pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">(2.1</font></u><font style="font-size: 11.0pt">)%</font></p>
  </td>
  <td width=114 valign=bottom style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:12.6pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">(1.4</font></u><font style="font-size: 11.0pt">)%</font></p>
  </td>
 </tr>
 <tr>
  <td width=427 valign=top style='width:4.45in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'>&nbsp;</p>
  </td>
  <td width=114 valign=bottom style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:12.6pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=114 valign=bottom style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:12.6pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=427 valign=top style='width:4.45in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'>&nbsp;&nbsp; Impact of growth in comparable
  sales of departments</p>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;licensed
  to third parties (Note 2)........................................ </p>
  </td>
  <td width=114 valign=bottom style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:12.6pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;0.6</font></u><font style="font-size: 11.0pt">&nbsp;%</font></p>
  </td>
  <td width=114 valign=bottom style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:12.6pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;0.6</font></u><font style="font-size: 11.0pt">&nbsp;%</font></p>
  </td>
 </tr>
 <tr>
  <td width=427 valign=top style='width:4.45in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'>&nbsp;</p>
  </td>
  <td width=114 valign=bottom style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:12.6pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'>&nbsp;</p>
  </td>
  <td width=114 valign=bottom style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:12.6pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=427 valign=top style='width:4.45in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'>&nbsp;&nbsp; Decrease in comparable sales
  on an owned plus licensed basis.. </p>
  </td>
  <td width=114 valign=bottom style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:12.6pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">(1.5</font></u><font style="font-size: 11.0pt">)%</font></p>
  </td>
  <td width=114 valign=bottom style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:12.6pt;
  margin-bottom:.6pt;margin-left:0in;text-align:right'><u><font style="font-size: 11.0pt">(0.8</font></u><font style="font-size: 11.0pt">)%</font></p>
  </td>
 </tr>
</table>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='mso-style-link:"Body Text 3 Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'>&nbsp;</p>

<p style='mso-style-link:"Body Text 3 Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt'>Notes:</p>

<p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:0in;margin-bottom:
..6pt;margin-left:.25in;text-align:justify;text-indent:-.25in'><font style="font-size: 10.0pt">
(1)&nbsp;&nbsp; Represents the period-to-period
change in net sales from stores in operation throughout the year presented and
the immediately preceding year and all online sales, excluding commissions from
departments licensed to third parties.</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:justify'><font style="font-size: 10.0pt">&nbsp;</font></p>

<p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:0in;margin-bottom:
..6pt;margin-left:.25in;text-align:justify;text-indent:-.25in'><font style="font-size: 10.0pt">
(2)&nbsp;&nbsp; Represents the impact of including
the sales of departments licensed to third parties occurring in stores in
operation throughout the year presented and the immediately preceding year and
via the Internet in the calculation of comparable sales. The Company licenses
third parties to operate certain departments in its stores and online and
receives commissions from these third parties based on a percentage of their
net sales. In its financial statements prepared in conformity with GAAP, the
Company includes these commissions (rather than sales of the departments
licensed to third parties) in its net sales. The Company does not, however,
include any amounts in respect of licensed department sales (or any commissions
earned on such sales) in its comparable sales in accordance with GAAP (i.e. on
an owned basis). The Company believes that the amounts of commissions earned on
sales of departments licensed to third parties are not material to its results
of operations for the periods presented.</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-align:justify;text-autospace:
none'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:.6pt;text-autospace:none'>&nbsp;</p>

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